JIM CHRISTIANA FOR SENATE issued the following announcement on July 28.
The details of Congress’ second economic stimulus package could slow Pennsylvania’s ability to disperse some financial relief.
Congress is negotiating a second economic stimulus package this week, but the bill’s details could hamper Pennsylvania’s ability to disperse some financial relief.
The state is working to support residents in need after a federal program providing an extra $600 per week to unemployed Americans ended this month. The federal CARES Act passed in March set aside an additional $600 per week in unemployment insurance to keep millions of Americans solvent during COVID-19 business closures and stay-at-home orders.
Now, Congress is negotiating a pared down bill that could include a second round of stimulus checks to millions of Americans, although it’s unclear exactly what that will look like.
Many Republicans on Capitol Hill are opposed to extending the full $600-per-week benefit, saying it disincentives Americans to get back to work. They’re considering using a formula to replace 70 percent of the salary a person received before layoffs, varying from worker to worker based on their pre-COVID earnings. This would likely result in an additional $200 per week for most, according to some economists.
Jerry Oleksiak, secretary of the Pennsylvania Department of Labor and Industry, on Monday said a formula-based action would dramatically increase the time it takes officials to administer federal funds. It would require a number of system and technology upgrades, he said.
“Both parties have plans, but they are radically different,” he said. “We are watching and hopeful that those benefits will be extended in a way that makes sure it’s a flat rate.”
If Congress were to simply extend the payments, regardless of the amount, the department could quickly administer the funds. If a means test or formula is added, “it could take months” to make the necessary changes, something state officials have shared with its delegation in Washington, D.C.
“If they change to a percentage or some kind of test to determine the amount of dollars an individual receives, we may have to review all of those claims individually,” Oleksiak said, adding that millions of people have filed for unemployment since mid-March.
Since March 15, the department has paid more than $30.6 billion in benefits from state and federal funding — nearly half from the federal unemployment pandemic program.
According to the number of unemployment claims filed in mid-July, the Pittsburgh region stands to lose about $295 million per month in regional income if the $600 checks are discontinued.
Pennsylvania’s unemployment rate in June was 13 percent, nearly two points above the national average but slightly lower than May’s statewide number.
Although updated local numbers are not yet available, unemployment in Pittsburgh and the surrounding counties was down in May compared to April — when southwestern Pennsylvania’s jobless rate was the highest it’s been since the 1980s.
The seasonally adjusted unemployment rate for the metro area fell to 13.7 percent in May. Beaver County’s rate was again the second-highest in the region at 15 percent, but lower than it’s April rate of 18.7 percent.
Original source here.
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